DoorDash, Inc. stock research
FY2023 Q3
DoorDash (DASH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased relative to the prior quarter, while cost of revenue also rose. Gross margin narrowed slightly compared to the prior quarter but remained above the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased relative to the prior quarter, while cost of revenue also rose. Gross margin narrowed slightly compared to the prior quarter but remained above the year-ago level.
- Gross profit grew at a pace similar to revenue, while cost of revenue increased in proportion, leading to a largely stable gross margin comparison with the prior quarter. The year-over-year improvement in gross margin was supported by a lower relative increase in cost of revenue versus revenue.
- Compared to the prior quarter, gross margin was slightly lower, reflecting a marginally higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a larger increase in revenue than in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.1%
Gross profit
$910.0M
Revenue
$2.2B
Cost of revenue
$1.3B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $2.0B | $876.0M | $1.2B | 43.0% |
| Jun 30, 2023 | $2.1B | $904.0M | $1.2B | 42.4% |
| Sep 30, 2023 | $2.2B | $910.0M | $1.3B | 42.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew at a pace similar to revenue, while cost of revenue increased in proportion, leading to a largely stable gross margin comparison with the prior quarter. The year-over-year improvement in gross margin was supported by a lower relative increase in cost of revenue versus revenue.
Compared to the prior quarter, gross margin was slightly lower, reflecting a marginally higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a larger increase in revenue than in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as any shift could affect gross margin stability.